Procter & Gamble Co. (PG) Stock Moves Down and Here’s Why

Procter & Gamble Co. (NYSE: PG) shares fell on Tuesday Dec 13 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Shares of Procter & Gamble Co. (NYSE: PG) were downgraded by analysts at Deutsche Bank AG in a note to their investors today. With a rating of Hold on the stock, Procter & Gamble Co. has a 52-week high of $90.33. As a means of comparison, a number of other analysts have issued reports on the stock recently, and Procter & Gamble Co. has earned a consensus one-year price target of $92.00, above the opening price of $84.67. Downgrades are more likely when analysts feel that the future prospects for the security have dropped from the initial recommendation, usually caused by a material and integral digression in the company’s procedures, future outlook or industry.

Procter & Gamble Co. (NYSE: PG) shares last traded at $85.07, a drop of $0.06 per share or -0.07% compared to the previous closing price. Opening at $84.67, they ranged from $84.54 and $85.24 throughout the day.

Procter & Gamble Co. (NYSE: PG) currently has a market cap of 227.66B.

Procter & Gamble Co. (NYSE: PG) Average Daily Trading Volume

1,350,465 shares crossed the trading desk yesterday, lower than normal, out of a total float 2,673,610,000. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to pinpoint substantial volume growth or circulation by institutional investors.

However, one day of high volume buy side trading is not enough to affirm a trend. So market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain substantial teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.

Procter & Gamble Co. (NYSE: PG) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By marking the activity of these professional investors and how they affect moving averages, traders can make educated trades.

With that in mind, Procter & Gamble Co. (NYSE: PG) now has a 50-day MA of $84.36 and 200-day MA of $85.62. It has traded in a 52-week range between $74.46 – 90.3300 and today’s last price is 5.82%% lower than the 52 week high of $90.33.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings by at least 25% over a 3 year period.

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